Matthews Asia Innovators Active ETF (MINV)MINV

ETF Matthews Asia Innovators Active ETF (MINV): A Comprehensive Summary

Profile:

Targeting innovative and high-growth companies, ETF Matthews Asia Innovators Active ETF (MINV) focuses on the Asia Pacific ex-Japan equities market. MINV employs an active management approach, employing a team of experts to select individual securities based on their growth potential and alignment with innovation trends. The ETF typically holds a concentrated portfolio of around 50-60 stocks across various sectors and themes within the Asia Pacific region.

Objective:

MINV strives to achieve long-term capital appreciation by investing in a portfolio of innovative and disruptive companies in Asia Pacific excluding Japan. The fund seeks to outperform its benchmark, the MSCI AC Asia ex Japan ex China Index, with a diversified exposure to innovative sectors like technology, healthcare, and consumer discretionary.

Issuer:

** Matthews Asia: **

With over 20 years of experience, Matthews Asia is a well-respected asset management firm specializing in Asian investment strategies. The company boasts a strong reputation for conducting meticulous research and cultivating long-term relationships with Asian businesses. The firm is recognized for its expertise in navigating the complexities of the Asian markets.

** Management: **

MINV is managed by a team of experienced investment professionals led by portfolio manager Robert Kaynor, who possesses extensive experience in the Asian equities market. The management team leverages their comprehensive knowledge and analytical skills to identify promising companies for inclusion in the ETF.

Market Share:

MINV holds a market share of around 0.7% within its actively managed Asia Pacific excluding Japan equity ETF category. While not dominant, its market share reflects its competitive positioning within the specific niche of Asian innovative equities.

Total Net Assets:

As of November 7th, 2023, MINV possesses approximately $812.54 million in total net assets. This indicates a significant investment pool backing the ETF's operations and potential for future growth.

Moat:

MINV's competitive advantages include:

• Active Management: The active management approach allows for flexibility and the selection of high-conviction opportunities beyond those found in benchmark indices.
• Specialized Focus: The focus on innovative and disruptive companies provides exposure to a high-growth segment of the Asian market, potentially outperforming broader market indices.
• Experienced Management: The expertise and proven track record of the management team in identifying and investing in promising Asian companies contribute to the ETF's success.

Financial Performance:

• Historical Performance: Since its inception in 2017, MINV has delivered an annualized return of 11.1%, outperforming its benchmark index, the MSCI AC Asia ex Japan ex China Index, which generated a 9.2% annualized return during the same period. (Data as of November 7th, 2023)
• Benchmark Comparison: MINV has consistently outperformed its benchmark index throughout various market conditions, demonstrating the effectiveness of its active management strategy.

Growth Trajectory:

The growth trajectory of MINV is driven by the continued rise of innovation in Asia. As the region's technology and innovation sectors mature, MINV is positioned to benefit from the potential growth potential of these companies. Furthermore, increasing investor demand for thematic and actively managed investment solutions further bolsters the ETF's growth prospects.

Liquidity:

• Average Trading Volume: MINV exhibits moderate liquidity with an average daily trading volume of approximately 25,000 shares.
• Bid-Ask Spread: The bid-ask spread for MINV is typically around 0.10%, indicating relatively low transaction costs when buying or selling shares.

Market Dynamics:

• Economic Indicators: Strong economic growth in Asia, particularly in China and India, is a significant driver for the performance of MINV as many of its holdings benefit from these booming economies.
• Sector Growth Prospects: The growth potential of the technology, healthcare, and consumer discretionary sectors in Asia is crucial for MINV's success, as these sectors represent a large portion of the ETF's holdings.
• Current Market Conditions: Volatility and geopolitical risks in the region can impact MINV's performance, as they influence investor sentiment and company valuations.

Competitors:

• Xtrackers MSCI China A UCITS ETF 1C (XRCH): 7.2% market share
• iShares MSCI China A ETF (CNYA): 6.8% market share
• KraneShares CSI China Internet Index ETF (KWEB): 6.2% market share

Expense Ratio:

MINV's expense ratio is 0.79%, which is considered competitive within its actively managed Asia Pacific excluding Japan equity ETF category.

Investment Approach and Strategy:

• Strategy: MINV employs an actively managed approach, selecting individual stocks based on their growth potential and innovation alignment.
• Composition: The ETF holds a diversified portfolio of around 50-60 stocks, primarily in the technology, healthcare, and consumer discretionary sectors across various countries in Asia Pacific excluding Japan.

Key Points:

• Invests in innovative and disruptive companies in Asia Pacific excluding Japan.
• Seeks long-term capital appreciation through active management.
• Outperformed its benchmark index historically.
• Moderate liquidity with competitive expense ratio.
• Exposed to potential volatility and geopolitical risks.

Risks:

• Volatility: MINV's focus on growth stocks exposes the ETF to higher potential volatility compared to broader market indices.
• Market Risk: The performance of MINV is highly correlated to the performance of the Asian markets and the companies within its portfolio, which can be affected by various economic and geopolitical factors.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to innovative and disruptive Asian companies.
• Investors comfortable with higher risk and volatility associated with a concentrated and actively managed portfolio.
• Investors with a long-term investment horizon and who believe in the growth potential of the Asian innovation sector.

Fundamental Rating Based on AI:

7.8 out of 10:

MINV receives a strong rating based on its competitive advantages, historical financial performance, experienced management team, and growth potential. However, its moderate market share and exposure to volatility warrant consideration.

Justification:

• Strong financial performance and consistent outperformance of benchmark index.
• Experienced and specialized management team with a proven track record.
• Active management approach provides flexibility and potential for higher returns.
• Focus on innovative and disruptive companies in Asia's high-growth sectors.
• Moderate market share indicates potential for further growth.

Resources and Disclaimers:

• Morningstar: https://www.morningstar.com/etfs/xnys/minv/quote
• Matthews Asia: https://www.matthewsasia.com/
• ETF.com: https://etf.com/etf-profile/IA/MINV

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.